Interesting article about Oil

wanghong

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Below is an Interesting article I found, which says that.....Do not
expect much from Crude Oil producers and future is not with the
companies producing Jet fuels but Biofuels. Also no wonder if some of
8 t* c  e) q/ Mthese oil producer will go bankrupt or out of the business even if
4 z8 M9 |- D8 qcrude prices improves. This implies also to good names such as Shell,
* V! k9 e: `2 D+ a' qEXXON, BG, BP, Cheveron ....xyz.. oils
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) _/ c. K/ K6 U" |# \! hRecently OPEC reduced crude oil production twice over just a few
6 Z+ R# M+ r1 g2 Kmonths. There are three wars going on in Gaza, Iraq and Afghandistan.
A year ago these things would have spiked the price of crude oil by at
! ^2 t$ O: h5 V/ \- U9 F, N5 G* ileast $50.00 per barrel. Today, oil price declined by a record amount.


# d$ s- E. R. Q. A; D; T! pThere are several reasons the price of oil is decreasing in the face
- W( U8 M* ]! h) hof so much news. These reasons are:
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1. New oil has been found in Canada, Montana, North & South Dakota and
in the ocean near Brazil. Each of these oil fields has more oil than
& X3 a. S1 j; Q0 [; `Arabia.
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2. New natural gas has been found in Pennsylvania and West Virginia.
6 n# Q7 K8 u8 k/ S' jThis is the largest find in North America.
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3. New methods of injecting CO2 and surfactants into oil wells is
being used to double their output.


1 u' R! ]7 x8 M# E4. Production of bio-fuels is beginning to reach critical mass. Bio
2 y. |' {3 }3 i. u: M: Qfuel is being produced from many plants and algae. The production
: d+ X* l4 n# M1 L  g" Lpotential per acre in some cases is astounding. Many countries are
8 H, X- b0 G2 q4 ~9 r; ^6 Hracing to produce bio fuels.

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; }) r2 c/ \8 }6 F  }5. Virtually every restaurant in the US and all food processing plants
3 n5 g; A4 D1 L8 L( t( qare now selling their used oil to bio-diesel producers. Every pork,
$ i" n6 Q% ?5 Z8 Y# ~cattle, turkey and chicken processing plant will soon sell their fat
to bio-diesel producers. One pork processing plant in Oklahoma is
# i% D) Y( r  y/ c' bproducing 30,000 gallons of bio-diesel per day from pork fat.
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6. There are 99 nuclear reactors in various stages of planning and
construction around the world at this time. Several hundred more are
* q# K; \* D7 |expected to be built in the future. Much of the energy they produce
! P( u, Q& V( u9 e& s4 wwill replace oil.


7. Every company in any form of transportaion business is replacing
. T# z6 O- R: p) A3 i* W3 h  lolder equipment such as trucks, airplanes, train engines, ships, etc.
: @& j1 G) `3 P* m1 Rwith new more fuel efficient equipment. Airlines and railway companies
; k  `- \8 Z6 \, D) N! B/ ~1 Fare experiencing 20% to 25% better fuel econony with the new
equipment.

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Airlines are flying airplanes with bio-fuel. They are finding the bio-
& U: p! G' `; u+ A. I* f1 ^9 mfuel is cleaner and performs better than jet fuel.

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8. Cities and counties throughout the US are selling the rights to
# U5 l" w2 u" I; e! l8 P$ ~) fcapture methane gas from landfills. This is a huge source of gas
available at very little cost or risk. The gas is displacing crude
oil.
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9. Coal is being transformed into a clean burning liquid fuel. The CO2
produced as a byproduct is sold to oil companies for injection into
! x2 t/ t8 l! _% a5 o! xoil wells.

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) j4 Y+ v% u5 G: W8 L" z0 }! k10. Solar, wind and ocean energy is displacing oil as an energy
/ c; h8 G3 `2 P  w( A' P5 Gsource. Three new wind turbines are being erected every day in the US.
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Each of the above by itself will not make a large difference in the
( g+ u1 \$ y; {# pprice of crude oil but the sum of all of them together is world
changing. The important thing is that OPEC no longer has the ability
. o* m/ F- s/ z, N" P# N% lto control oil prices.

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) L- k4 j- w+ K8 j* m& M  XWith the above scenario, I still believe that there are under
5 N, Z* Y# p' h: operformed OIL companies and probably they are yet to get the justified
1 U5 T! V% n* R! ~  Hvalue .....
IAE- Ithaca , EPL Energy Partners Ltd, Opti etc ...
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% H# J/ S+ T. b* c( ]" o0 Q) hThe above articles are from WSJ .............PUBLISHED ON 9TH JAN
2009 ... FYI-Only